This is one of the most common questions we get asked as licensed real estate agents in the Lower Mainland. Before you read this post, ask yourself: “What would a real estate agent bring to the table that I couldn’t do myself?”
Expertise: Just a show?
Many consumers imagine real estate agents as suave salespeople looking to make a quick buck. If you think this… you may be right, in some circumstances. However, stricter legislation and savvy consumers have now turned this idea on its head. As the supply of agents flooded the market in the Lower Mainland (with over 25,000 agents in BC), agents were pressured to differentiate in more ways than a fancy car or flashy suit.
Now, buyers evaluate and select their agents using a number of criteria including expertise in all facets of property sales, including residential homes and condominiums, to commercial offices and buildings.
Peace of mind
As a buyer or seller, you may have a checklist in mind for buying or selling a home yourself. Some professionals (i.e. lawyers, notaries) through their knowledge of the legal system, may be able to navigate a trade in real estate quite easily.
However, most average consumers simply do not have the time during a hectic schedule to learn the intricacies of contract law, negotiation tactics, MLS listing, and so on. Agents spend a large chunk of their time reviewing paperwork before a sale, including a hefty amount of time visiting municipality offices to pull land title paperwork.
For the consumer requiring peace of mind during a real estate transaction, selecting the right agent may be the right approach.
The true savings
But what about the commission?! The discussion of choosing a real estate agent often centers around the topic of commission. For sellers, this can be a touchy subject as this will be a sizeable amount approximately in the tens of thousands. However, this cost benefit analysis cannot overlook the potential of an owner making a critical mistake in their “for sale by owner” listing.
Sellers working without an agent can quickly find themselves facing financial penalties if mistakes are made in:
- drafting of an enforceable contract of purchase and sale
- oversight in making the necessary disclosures to buyers
- errors in the documentation preparation
- errors in the delivering a title clear of encumbrances
- issues during negotiation
- incorrect methods of appraising a home (high/low estimates)
All of these potential pitfalls can result in losses above and beyond the cost of selecting a professional agent specializing in the sale of property in your area.
Final thoughts
We hope that the points outlined above help you in making the right choice for you in your real estate transaction. Working with an agent may pay dividends for many, as the changing landscape of real estate is difficult to navigate for the average home owner.